Download this Checklist for Evaluating Distribution ERP Solutions
In the past, distributors had limited options for ERP solutions. The choices were: to use entry-level accounting software and countless plug-ins or industry-specific applications built on antiquated technology with limited accounting functionality. Here are the features and functions to look for when evaluating today’s wholesale distribution software.
Find out more about what your Distribution business should look for in your next ERP with our Distribution Management System Evaluation Checklist. Download your copy here:
Features that Enable You to Compete at Your Level
The wholesale distribution industry is ever-changing and rapidly, and behemoths like Amazon have cut distributors out of the picture in several B2B markets. The advent of mobility and automation are being felt at every step in the supply chain, with shorter cycle times and higher customer expectations.
The boundaries between distribution, retail, and manufacturing are fuzzier every day. Today’s distributor faces tighter supply chains, with manufacturers selling directly to retailers or, in some cases, to customers due to eCommerce innovation. Changes in distribution and supply chain models are being observed industry-wide.
Amazon is the most recent example of a massive supply chain disruptor. Once a consumer-focused online retailer, the company has become the largest distributor of industrial products and a considerable threat across distribution industries. In response, distributors and wholesalers must rethink their go-to-market strategies and transform their businesses using modern technologies to keep up.
As the intermediary between the manufacturer of a product and another entity in the distribution supply chain, Distributors typically buy smaller quantities and sell to retailers or other manufacturers. They rarely sell to consumers but increasingly provide B2B commerce storefronts. Look for an ERP that supports:
- B2B Commerce
- CRM Marketing and Sales
- Will Call and Special Orders
- Kitting and Disassembly
- Barcoding and Light WMS
Conversely, Wholesalers buy immense quantities of products from manufacturers and sell them in bulk at lower prices. Unlike distributors, wholesalers typically sell directly to consumers. Other wholesalers work with manufacturers, smaller distributors, and retailers to provide drop-ship services, storage, order fulfillment, and other outsourced contract services. ERP requirements for wholesalers should include:
- Blanket Purchase Orders
- Advanced WMS Features
- B2B and B2C Commerce
- Service Management
- Warehouse Transfers
For example, Acumatica provides a robust set of business applications built on a modern technology platform. With Acumatica, you can manage every part of your Distribution business, from accounting to inventory, purchasing to commerce, marketing to sales, and marketing to warehouse operations.
Choose the ERP Right for Your Product Types
In general, two types of products are distributed: durable goods and nondurable goods. Durable goods are also called hard lines or hard goods; consumers purchase less frequently because they last a long time, usually more than three years. Here are just a few examples of durable products:
- Consumer electronics
Nondurable goods are also known as soft goods or soft lines. Nondurable goods are typically consumable with shorter life spans. Consumers purchase nondurable goods more frequently. Examples of nondurable goods include:
- Food and beverages
- Health and beauty products
- Cleaning supplies
- Paper products
Is Acumatica Cloud ERP right for you? Acumatica is a popular choice for distributors of both durable and nondurable goods due to industry-specific features such as matrix items, lot and serial number control, kitting and disassembly, and first-expired-first-out picking based on the expiration date.
An Acumatica Partner Can Guide You
At Aqurus, we know how valuable Acumatica ERP software is for businesses – especially those in Distribution, eCommerce, and the retail industry. If you’re interested in how Acumatica’s Cloud ERP Software can boost your business, the Aqurus team is passionate about smooth implementation and ongoing support. Contact us today.